The legal tussle between US-based multinational streaming and production company, Netflix, and South Korean internet service provider, SK Broadband, is reportedly expected to continue focusing on the controversial subject of net neutrality.
According to reports, on Thursday, streaming giant Netflix appealed a ruling made by a Seoul court that was in favor of the SK broadband.
In June, the Seoul Central District Court denied Netflix's appeal that it is not liable to pay any fees to the ISP for network usage. Moreover, the court also denied Netflix‘s plea to affirm that it is under no duty to negotiate with the South Korean ISP.
Netflix stated that there has never been an instance where any court or government ordered a content provider to pay for network costs anywhere in the world. This ruling has the potential to destabilize the world’s internet ecosystem built by internet service providers and content providers.
SK Broadband, in its response to the above statement, put out a statement of its own, refuting Netflix's claim. The ISP stated that Netflix keeps arguing that the transfer is free under the net neutrality principle. However, the court had made clear in its initial ruling that net neutrality is a completely separate topic from paying network usage charges, and this is understood to the whole industry.
SK broadband added, the firm is also dissatisfied with Netflix's position, which saw the court's ruling as safeguarding the interests of a specific party. The court's judgment just reinforces the fundamental premise that anybody who utilizes the network must pay the cost.
For the initiated, the conflict goes back to April of 2020, when Netflix's local subsidiary sued SK Broadband after receiving a letter that demanded the payment of network usage charges from Netflix, accusing it of using on its network for free while being responsible for a majority of its traffic.
According to Netflix, it had attempted to negotiate with the ISP but had been unsuccessful. It also added that it had suggested SK Broadband to install and use its content delivery network to take down Netflix-related traffic, but that the ISP had declined and instead sought compensation for the network usage.